Huatai United Securities Co., Ltd.
Review Opinion on China General Nuclear Power Group Co., Ltd.'s 2025 Internal Control Evaluation Report
Huatai United Securities Co., Ltd. (hereinafter referred to as "Huatai United Securities" or "Sponsor") is the sponsor of China General Nuclear Power Group Co., Ltd. (hereinafter referred to as "CGN Power" or "the Company" or "the Issuer") for its issuance of convertible corporate bonds to non-specific targets. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," the "Stock Listing Rules of the Shenzhen Stock Exchange," the "Shenzhen Stock Exchange Main Board Listed Company Self-Regulatory Guidelines No. 1 - Normative Operation of Main Board Listed Companies," and other relevant regulations, Huatai United Securities has reviewed CGN Power's 2025 internal control evaluation report. The details are as follows:
I. Company's Internal Control Status
(I) Scope of Internal Control Evaluation
The Company determines the main entities, businesses, and matters included in the evaluation scope and high-risk areas based on a risk-oriented approach. The main entities included in this evaluation scope are the Company's headquarters and its principal subsidiaries. The principal subsidiaries included in this evaluation scope are: Guangdong Nuclear Power Joint Venture Co., Ltd., Ling Ao Nuclear Power Co., Ltd., Lingdong Nuclear Power Co., Ltd., Yangjiang Nuclear Power Co., Ltd., Fujian Ningde Nuclear Power Co., Ltd., CGN Nuclear Power Operation Co., Ltd., Daya Bay Nuclear Power Operations Management Co., Ltd., Suzhou Thermal Power Research Institute Co., Ltd., CGN Research Institute Co., Ltd., Taishan Nuclear Power Joint Venture Co., Ltd., CGN Engineering Co., Ltd., CGN Lufeng Nuclear Power Co., Ltd., Guangxi Fangchenggang Nuclear Power Co., Ltd., Shandong Zhaoyuan Nuclear Power Co., Ltd., Huapeng Technology Energy (Guangdong) Co., Ltd., CGN Huizhou Nuclear Power Co., Ltd., and their subordinate or entrusted management companies.
The total assets of the entities included in the evaluation scope account for 100% of the total assets in the Company's consolidated financial statements, and the operating income of the entities included in the evaluation scope accounts for 100% of the total operating income in the Company's consolidated financial statements.
Each entity included in the evaluation scope, based on its own business characteristics and management priorities, has included its key business areas and main business processes within the evaluation scope in accordance with the principles of comprehensiveness and materiality. The businesses and matters included in this evaluation scope are: the integration of the internal control system with the business system and business information systems; the separation of incompatible job responsibilities, authorization and approval controls, and the establishment and implementation of anti-fraud mechanisms for key positions; the control of important areas such as general management, procurement, sales, asset management, contract performance, fund control, and public opinion management; and the rectification of internal control deficiencies in 2024 and previous years. Key areas of focus include project engineering, contract management, and procurement.
The entities, businesses, matters, and high-risk areas included in the evaluation scope cover the main aspects of the Company's operational management and do not involve any significant omissions.
(II) Basis for Internal Control Evaluation and Standards for Identifying Internal Control Deficiencies
The Company conducts internal control evaluations in accordance with the enterprise internal control standard system. The internal control evaluation work strictly follows the procedures stipulated in the basic norms, evaluation guidelines, and the Company's internal control evaluation methods. This mainly includes steps such as compiling the evaluation plan, review by the Audit and Risk Management Committee, establishing an evaluation team, conducting self-evaluations, summarizing self-evaluation reports, independent evaluation, deficiency identification, deficiency rectification, compiling the evaluation report, review by the Audit and Risk Management Committee, and approval by the Board of Directors.